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The Alien Tort Statute allows foreigners to:
A. sue in U.S. courts for residency in the United States.
B. file claims in U.S. courts for violations of international law that may have occurred
beyond U.S. borders.
C. file claims in U.S. courts for alleged violations of foreign laws.
D. file claims against other foreign nationals for violations of U.S. EEOC law.
E. avoid prosecution from U.S. laws as long as they live, work, and have citizenship in
another country.
Which of the following are reasons that many firms engage in exporting?
A. Exports enable the firm to serve markets where it has sufficient production facilities.
B. Exports can offset cyclical sales in the firm's domestic market.
C. Exports eliminate the risk of losing the firm's technology to potential competitors.
D. All of the above.
E. Two of A, B, and C.
Foreign direct investment (FDI) includes all of the following except:
A. wholly owned subsidiary.
B. joint venture.
C. management contract.
D. strategic alliance.
E. none of the above. (All four are included within foreign direct investment.)
_______________ occurs primarily because of relative price differentials among
nations.
A. Foreign direct investment
B. International trade
C. Portfolio investment
D. All of the above
E. Two of A, B, and C
An international company is:
A. a global company.
B. amultidomestic company.
C. an affiliated company.
D. all of the above.
E. two of A, B, and C.
Market forces that set the relative prices of currencies are:
A. not influenced by government policies.
B. not influenced by world events.
C. influenced by many forces including forces external to business, such as world
events.
D. A and B.
Every continent has inland waterways that provide inexpensive access to interior
markets except:
A. Russia.
B. North Africa.
C. Australia.
D. North America.
This group of resources, which includes chrome and manganese, is used in many
technology applications, and the United States imports many of these resources 100
percent:
A. rare earths.
B. nonfuel minerals.
C. rare minerals.
D. mineral gems.
Marketers everywhere must:
A. know the market.
B. satisfy customers' needs.
C. inform potential customers.
D. two of the above.
E. all of A, B, and C.
According to the text, increased emphasis on the achievement of effective supply chain
performance has resulted from:
A. shorter, more predictable product life cycles.
B. the impact of unplanned political and social events.
C. web-enabled tools for planning, executing, and optimizing supply chains.
D. all of the above.
E. two of A, B, and C.
The following arrangement can provide a firm with foreign products:
A. overseas joint venture.
B. overseas independent contractor.
C. foreign sales office.
D. two of the above.
E. all of A, B, and C.
The proportion of world commercial services exports accounted for by ____________
has evidenced an overall decline since 1980.
A. Asia
B. the Middle East
C. Latin America
D. all of the above
E. two of A, B, and C
Porter in his diamond model distinguishes two types of factor conditions:
A. positive and negative factors.
B. contributing and disaggregating factors.
C. advanced and basic factors.
D. foreign and domestic factors.
Which of the following is correct about scenario analyses?
A. The objective of the process is to forecast the future.
B. The process extrapolates from past data to build scenarios for guiding decision
making.
C. Managers develop best-case, worst-case, and most likely scenarios to guide decision
making.
D. All of the above are correct.
E. None of A, B, or C is correct.
According to the text, the types of information an IC needs to have reported by
subsidiaries include:
A. technological.
B. market opportunities.
C. economic events.
D. all of the above.
E. two of A, B, and C.
Once convergence is reached:
A. financial markets will be more integrated than they are now.
B. direct comparisons of company statements will be possible.
C. A and B.
D. Western-style capitalism will be at its apex.
The following country is not a member of ASEAN:
A. Indonesia.
B. Vietnam.
C. Cambodia.
D. China.
Heavy oil is:
A. a group of unconventional oil sources such as oil sands, shale, coal, and natural gas,
all of which via processing can yield oil.
B. a rich oil found in deposits in Saudi Arabia and Kuwait whose molecular weight is
heavier than normal oil.
C. oil extracted from biomass that is reprocessed.
Heavy oil is oil that is obtained from unconventional sources and usually through
additional processing involving heating and pressure treatments. It does not flow easily
and cannot be obtained from wells, as can conventional oil.
Climate is probably the most important element of the physical forces, as it sets the
limits on:
A. annual rainfall, and thus water supply.
B. population growth patterns.
C. what people can do physically and economically.
D. expected FDI.
Dumping is:
A. selling a product abroad for less than its production cost in the importing nation.
B. selling a product abroad for less than the market price in the export nation.
C. exporting a product to a third country without correct documentation.
D. two of the above.
E. all of A, B, and C.
Densely populated areas coincide with:
A. rivers, lakes, and seacoasts.
B. inland waterways.
C. rich mineral reserves and rare earth deposits.
D. low levels of environmental awareness.
Transshipping is used to:
A. reduce shipping costs, like consolidation.
B. avoid import administration.
C. evade allocated quotas.
D. all of the above.
E. two of A, B, and C.
The premiums charged by marine insurance companies on an international transaction
depend on:
A. the age of the ship.
B. whether the goods are stowed on deck or under deck.
C. the volume of business.
D. how the good are packed.
E. all of the above.
If two English multinational companies had a dispute arising in New York City, and
there were no choice-of-law or choice-of-forum clauses in their contract, it is likely
that:
A. a New York court would hear their complaint.
B. they would bring their dispute to an English court.
C. the dispute would get heard not in court but, rather, in the boardrooms.
D. they would reach an agreement informally and develop an off-the-books settlement.
E. they would bring their dispute to the World Court for adjudication.
Regional trade agreements such as NAFTA can be seen to impact the WTO:
A. negatively, because they undercut the nondiscrimination principle of the WTO.
B. positively, because they extend most-favored-nation status to more nations.
C. negatively, because they compete with the WTO for membership, since nations can
belong to only one trade group.
D. negatively, because the United States and the EU do not have a regional trade
agreement between them.
Collection documents are:
A. for debt carried in cash receivables.
B. needed to load and unload transported goods.
C. presented to the buyer for payment.
D. certificates of origin, invoices, and inspection certificates.
E. C and D.
When the law of one price is applied to interest rates, it suggests that:
A. interest rates do not differ much across national borders.
B. inflation is not affected by interest rates.
C. inflation and interest rates do not follow the law of one price.
D. varying interest rates take into account anticipated differences in inflation rates.
Incoterms are developed and maintained by:
A. the U.S. Chamber of Commerce.
B. the International Chamber of Commerce.
C. the WTO.
D. the UN.
E. a committee of major global companies.
In the new strategic planning process:
A. top management is assigning strategic planning to teams of line and staff managers
from the same business.
B. interaction with important customers and suppliers should be included.
C. governments and other stakeholdersshould be direct participants.
D. all of the above.
E. two of A, B, and C.
Decisions to standardize product and equipment with which to make it and to tailor it to
fit each national market are most likely to be made by:
A. IC headquarters.
B. subsidiary headquarters.
C. LDC government officials.
D. none of the above.
E. two of A, B, and C.
A fronting loan enables the firm to:
A. protect itself from the risk of blocked asset transfers, such as remittances, loan
payments, and profit repatriations.
B. build collateral with local firms.
C. devote more resources to bricks and mortar.
D. gain a competitive advantage in new markets.
The current account on the BOP has three subaccounts:
A. export, import, and capital.
B. tangible exports, tariff revenues, and capital.
C. fixed assets, current liabilities, and long-term debt.
D. merchandise, services, and unilateral transfers.
